new bond failed17 May 2018 13:57
Petrofac extends decline to session low, dropping as much PFC LN Equity
as 9.7%, with volume ~1.3x 3-month daily average; failure to price new
bond on Tuesday as expected is a �minor setback,� Bernstein analyst
Nicholas Green says in note.
Cites �insufficient capital market appetite� for bond issue, $200m of
which was intended to help repay $677m bond due in October.
October 2018 bond will now be paid out of existing liquidity via cash and/or facilities
Bernstein:
�Minor setback for Petrofac� as management had discussed
preference for new bond; 6% coupon was �insufficient� to
attract enough interest
Using cash or facilities to pay down October 2018 bond will
reduce Petrofac�s liquidity buffer, which isn�t a �major�
concern but is a negative